Staying Calm When Facing Financial Uncertainty
Staying Calm When Facing Financial Uncertainty
Calming Your Nerves When Facing Your Own Financial Uncertainty
March 30, 2020
The reality is that we all need money to live. We have rent to pay, loans to pay back, and food to buy.
So when our source of income is threatened by some unforeseen circumstance, it’s easy to feel a rush of nerves. It’s a scary situation. But there are steps we can take to help us calm our nerves when faced with financial uncertainty. And by taking these steps we can start to feel confident in our finances and relieve some of our anxiety.
This is exactly what I did recently when feeling overwhelmed with all of the recent what-ifs of life. I sat down, opened my budget, ran some numbers, and laid out some contingency plans. Doing this simple exercise helped put my mind at ease. It gave me a sense of relief while also giving me the information I would need to make future financial decisions. Knowledge is power. If you are feeling nervous about your potential financial future, here are a few steps you can take to ease your nerves.
Create A Bare-Bones Budget
A bare-bones budget consists of only the expenses you absolutely need. All of the “fluff” you are accustomed to will be cut out. After you remove the fluff, you will end up with the amount of money that is needed for you to pay your bills and buy life’s necessities. Your bare-bones budget would include things such as:
Rent/Mortgage
Groceries including Pet Food
Household Goods
Loan Repayments
Utilities
Insurance Premiums
Car Maintenance/ Fuel/ Transportation Costs
The goal of this step is not for you to start living on this bare-bones budget. It’s purely an exercise that allows you to determine what your spending would look like if you eliminated all of your “wants”.
It’s an eye-opening exercise that can shed light on how much of your spending is wants vs. needs. And if you only do one thing to help calm your nerves in times of financial uncertainty, this is the one I would suggest. Simply going through this exercise will provide you with key information you can use to help guide future money decisions.
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https://www.cashfortacos.com/calming-your-nerves-when-facing-your-own-financial-uncertainty/